German Business Confidence Drops Again

German business confidence fell more than analysts forecast in September as economic and political risks in the euro area increase.

The Ifo institute’s business climate index, based on a survey of 7,000 executives, dropped to 104.7 from 106.3 in August. Economists predicted a decline to 105.8, according to the median of 36 estimates in a Bloomberg survey. The index is now at its lowest since April 2013.

Europe’s largest economy contracted in the second quarter and euro-area growth stalled as international political tension and stubbornly high unemployment sapped sentiment. The risks prompted the European Central Bank this month to say it’ll be more active in adding stimulus to the euro area by starting asset purchases.

Bloomberg

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